A group of four banks have successfully issued a promissory note — a type of legally binding loan agreement — through a new blockchain platform, a news release on May 21 announced.

The financial institutions used finledger to complete the transaction. According to Helaba, one of the banks involved, the platform reduces the steps involved with issuing such a note by more than 50%.

As well as eliminating the need for lenders to hold documents or for borrowers to send valuables, the banks claimed the technology helps cut the risks and costs associated with the process.

DekaBank, dwpbank, DZ Bank and Helaba were involved in the pilot transaction, and there are now plans to roll out finledger to the entire industry. Peter Tenbohlen, the head of operations at DZ Bank, added:

“As digitization has progressed, our customers’ demand for digital services has increased significantly. Thanks to the bundled expertise of four banks, we are now presenting a new platform through which trading transactions can be processed fully automatically.”

Helaba, one of the most prominent banks in the German city of Frankfurt, recently joined the distributed ledger technology-based trade finance network Marco Polo.